Aside from being affordably priced, the best payroll software for small business users calculates employee wages and deductions accurately and pays and files payroll taxes automatically. Most offer unlimited pay runs, paid time off (PTO) tracking, two-day direct deposits, employee self-service portals, and access to employee benefits.
To find the ideal payroll systems for small businesses, we evaluated more than a dozen solutions and narrowed the list down to our top nine recommendations:
- Gusto: Best overall small business payroll software and for those needing solid HR support
- QuickBooks Payroll: Best for QuickBooks accounting users and fast direct deposits
- Rippling: Best all-in-one human resources (HR), payroll, and information technology (IT) solution
- Square Payroll: Best for small restaurants, retail shops, and Square POS users
- OnPay: Best for delegating payroll duties and those with niche payroll needs
- Paychex Flex: Best for startups and small companies needing dedicated payroll support
- ADP Run: Best for rapidly scaling small businesses
- Homebase Payroll: Best for businesses with hourly workers
- Patriot Payroll: Best for mom-and-pop businesses that want a low-cost DIY option
At Fit Small Business, we are driven by our mission to provide the best answers to your small business questions. Guided by our editorial policy, our thorough evaluation process ensures that we are a reliable source for payroll software insights. We go beyond the superficial, deeply checking each software to ensure accuracy.
For the list of the best payroll software for small businesses, we formulated a special rubric that will evaluate the features that small businesses need.
Best Payroll Software for Small Businesses Compared
All the providers in this guide offer full-service payroll, tax filing services, year-end reporting, and direct deposit payments, and employee self-service portals. They also provide time tracking tools (except for OnPay), as well as new hire onboarding solutions (except for Patriot Payroll). Here are some of the key features, including the providers’ basic pricing information.
Free Trial Promotion | Starter Monthly Pricing | Contractor Only Payroll Plan | Time Tracking | Health Benefits Covers All States | |
|---|---|---|---|---|---|
| One month free* | $6 per employee plus $40 base fee | $6 per worker plus $35 monthly |
| Limited to 37 states |
Visit Gusto or Go to Section | |||||
| One month free trial* | $5 per employee plus $45 base fee | $15 monthly for 20 workers; plus $2 for each additional contractor | Included in higher tiers | Hawaii, Vermont, and Washington, D.C., are not covered |
Visit QuickBooks Payroll or Go to Section | |||||
| ✕ | $8 per employee plus $35 base fee** | ✕ | Included in quote | ✓ |
Visit Rippling or Go to Section | |||||
| ✕ | $6 per employee plus $35 base fee | $6 per worker monthly | ✓ | ✓ |
Visit Square Payroll or Go to Section | |||||
| One month free trial | $6 per employee plus $40 monthly | ✕ | Via third-party software integration | ✓ |
Visit OnPay or Go to Section | |||||
| Three months free payroll* | $5 per employee plus $39 base fee | ✕ | Paid add-on | ✓ |
Visit Paychex Flex or Go to Section | |||||
| Three months free payroll* | $2.50 per employee, per weekly pay run plus $49 base fee** | ✕ | Paid add-on | ✓ |
Visit ADP Run or Go to Section | |||||
| 14 days free trial | $6 per employee plus $39 base fee*** | ✕ | ✓ | ✕ |
Visit Homebase Payroll or Go to Section | |||||
| 60 days free trial | $4 per employee plus $17 base fee**** | ✕ | Starts at $2 per employee plus $6 monthly | ✕ |
Visit Patriot Payroll or Go to Section | |||||
*Get one month free when you run your first payroll. Offer will be applied to your Gusto invoice(s) while all applicable terms and conditions are met or fulfilled. **Pricing is based on a quote we received. ***Requires purchase of Homebase’s main time tracking and scheduling platform, which has a free plan for one-location businesses with up to 20 employees. ****Pricing is for the basic plan with do-it-yourself tax filings. Patriot Payroll also offers a full-service option with tax filing services that costs $37 plus $4 per employee monthly. | |||||
Gusto: Best Overall Payroll Software for Small Business Users
Overall Score: 4.83 / 5
Pros
- Unlimited pay runs with automated payroll tax payments/filings and year-end reporting
- Has hiring and performance review tools
- Reasonably priced for small businesses
- Supports international contractor payments in more than 90 countries
Cons
- Health insurance limited to 37 states
- Time tracking, next-day direct deposits, and multistate payroll are available only in higher tiers
- No dedicated payroll specialist
Read our Gusto review
Pricing
Plans
- Simple: $40 base fee + $6 per employee monthly
- Plus: $80 base fee + $12 per employee monthly
- Premium: Custom priced
- Contractor-only payroll package: $35 base fee + $6 per contractor monthly (for businesses that only pay contract workers)
Add-ons
- State payroll tax registration: Pricing varies per state
- HR advisory services for Plus plan only: $8 per employee monthly (this is included for free in the Premium tier)
- International contractor payments across 90-plus countries: Custom-priced
- R&D tax credits: 15% of identified tax credits
- Health insurance and other benefits: Pricing varies by benefit
Read our Gusto review
Gusto ranks high among its competitors as its payroll and HR features enable small businesses to operate with the amenities that some larger companies offer. It supports multiple pay schedules and can pay employees via the Gusto Wallet app, direct deposits, and checks you print yourself. Job postings, applicant tracking, and offer letter templates are also available to help streamline hiring processes. Gusto even notifies each new hire so that they can complete the required paperwork. This is unlike QuickBooks Payroll, Patriot Payroll, and Square Payroll, which have basic HR tools.
Scoring 4.83 out of 5 in our evaluation, Gusto earned perfect marks in pricing, reporting, user popularity, and in our expert assessment. However, the limited coverage of its health insurance (available only in 37 states) and having to subscribe to one of its higher tiers to access HR tools, such as time tracking and online PTO requests, prevented Gusto from getting a higher score. However, many users still find it a valuable payroll partner given its intuitive interface and efficient tools.
Gusto lets you add employee time data and additional earnings like bonuses directly into its payroll solution.
(Source: Gusto)
Gusto Overview
- Key Features
- When To Use Something Else
- Automatic and unlimited payroll runs in all 50 states: Unlike ADP Run and Paychex, Gusto allows you to process unlimited payroll runs, including bonus and off-cycle payments, at no extra cost. On top of that, you can even set payroll to run on autopilot. However, its starter plan only comes with single-state payroll. You’ll have to upgrade to its higher tier if you require multistate pay processing.
- Automated tax payment and year-end report filing: Gusto withholds, pays, and files taxes on federal, state, and local levels automatically. It handles year-end tax reporting (W-2s and 1099s) for free, unlike ADP Run and Paychex, which charges extra for this.
- International contractor payments: Businesses can pay their contractors in more than 90 countries, such as India, Canada, the United Kingdom, and the Philippines.
- Employee benefits: Gusto offers standard and nonstandard benefits options, such as 529 college savings accounts and Gusto Wallet—a free financial management app with time tracking tools. However, its health insurance is available only in 37 (as of this writing).
- Multiple pay options: With Gusto, employees are paid through manual checks, pay cards, or direct deposits. The standard direct deposit timelines are two and four days, but subscribing to Gusto’s higher tiers gets you a next-day option.
- Efficient time tracking and workforce management tools: Aside from project tracking and workforce costing tools, you can monitor your employees’ and contractors’ time through Gusto or via the Gusto Wallet. You can also create custom PTO policies and send/approve time-off requests, but these tools are available only in Gusto’s higher tiers.
Multilocation business owners might find Gusto a bit pricey because they’ll have to upgrade to at least its Plus plan to unlock Gusto’s multiple state pay runs. If you have a limited budget, any of the payroll programs for small business users on our list can handle your multistate payroll needs (although Patriot Payroll charges $12 monthly for each additional state tax filing).
If offering benefits is important to you, Gusto is a great choice—provided your business is not located in one of the 13 states (Alabama, Alaska, Hawaii, Louisiana, Mississippi, Montana, Nebraska, North Dakota, Rhode Island, South Dakota, Vermont, West Virginia, and Wyoming) where it doesn’t offer health insurance. If you are, consider any providers in this guide (except Patriot Payroll and Homebase Payroll, as neither offers benefits).
QuickBooks Payroll: Best for QuickBooks Users and for Fast Direct Deposits
Overall Score: 4.61 / 5
Pros
- Integrates seamlessly with QuickBooks accounting software
- Same- and next-day direct deposits
- Unlimited pay runs with automated payroll tax filings
- Affordable plan for processing contractor payments
Cons
- Automated local tax filings and time tracking available only in higher tiers
- Limited health benefits coverage (unavailable in HI, VT, and DC)
- Basic HR features
- Doesn’t have mobile apps for employee self-service (offers a workforce portal you can access online)
Read our QuickBooks Payroll review
Pricing
Plans
- Payroll Core: $45 base fee + $5 per employee monthly
- Payroll Premium: $75 base fee + $8 per employee monthly
- Payroll Elite: $125 base fee + $10 per employee monthly
- Contractor payments package: $15 monthly for 20 workers; plus $2 for each additional contractor (for businesses that only pay contract workers)
Read our QuickBooks Payroll review
QuickBooks Payroll is the best option for most QuickBooks accounting users. It integrates seamlessly—you access it within the same system with the click of a button—and all information flows throughout both systems (you don’t have to enter twice). Payroll runs are made easy with automatic pay calculation and tax payment/filing features. Unlike most of the other providers in this guide, its standard direct deposit timeline is a next-day option but can also handle same-day direct deposits if you get one of its higher tiers.
In our evaluation, the platform earned a 4.61 out of 5, with high ratings of 4 and up in nearly all criteria. It scored the lowest in popularity because of the limited number of user reviews (fewer than 500) on third-party review sites like G2 and Capterra. However, many users still appreciate its ease of use and solid payroll tools, especially its seamless integration with QuickBooks accounting.
Aside from a “to-do” list, QuickBooks Payroll’s main dashboard contains shortcuts for running payroll and adding employees.
(Source: QuickBooks Payroll)
QuickBooks Payroll Overview
- Key Features
- When To Use Something Else
- Automatic and unlimited payroll: You can approve and set payroll to run automatically with QuickBooks. It also lets you process payroll as many times as your business requires. However, its basic tax filing services only cover federal and state taxes. You have to be on its Elite plan if you want automated local tax filings; otherwise, you’ll have to file local tax forms yourself.
- Low-cost contractor payments: For small businesses that only need to pay contract workers, QuickBooks Payroll has a budget-friendly contractor payments package. For $15 per month, you can process payments for up to 20 workers (plus $2 for each additional contractor), e-file 1099 forms, and pay contractors via next-day direct deposits.
- Fast direct deposits: Apart from next-day direct deposits, you can pay employees through same-day direct deposit at no extra cost, provided you subscribe to QuickBooks Payroll’s higher tiers. Note that most providers on this list have a standard two-day processing time, although Square Payroll offers instant payments if you have a Square Payments account.
- Tax penalty protection: QuickBooks will cover the penalty and interest for any payroll tax error for up to $25,000 a year, regardless of who made the mistake. Note that you must purchase its Elite plan to have your errors covered. Experts will also represent you before the IRS and concerned agencies and will assist you in resolving the problem. No other providers on our list will offer to represent you to help fix tax issues or cover mistakes you make under any circ*mstance.
QuickBooks Payroll lacks the advanced HR features you need to manage employees. It doesn’t have the job posting and hiring tools that Rippling, Gusto, Homebase, Paychex Flex, and ADP Run offer. While its contractor payments plan includes next-day direct deposits, it lacks Square Payroll’s flexible options that allow you to pay contract workers via check, direct deposit, or its Cash App.
Rippling: Best All-In-One HR, Payroll & IT Solution
Overall Score: 4.54 / 5
Pros
- Has modular HR, payroll, expense management, and IT solutions that integrate seamlessly with each other
- Its professional employer organization (PEO) services can be easily switched on and off
- Connects with 500-plus business apps
- Offers global payroll and employer of record (EOR) services for hiring and paying international workers
Cons
- Pricing isn’t all transparent
- You have to purchase its workforce management platform before you can buy its other modules
- HR help desk option with phone and email support costs extra
- Can get pricey as you add more features
- Occasional software glitches
Read our Rippling review
Pricing
With Rippling, you have to call the provider to request a quote. Monthly fees start at $8 per employee, per module. Note, however, that you have to purchase its core workforce management platform before getting any of its modules.
For an HR payroll platform with time tracking, software integrations, and onboarding/offboarding tools, we were quoted a monthly fee of $35 plus $8 per employee. You can choose to add Rippling’s IT tools to manage business apps and computer devices for $8 per employee, per module monthly. Benefits administration services are also available, but pricing varies depending on the insurance broker.
Here are some of its add-on solutions and services:
- Global payroll: $20 per employee or contractor monthly*
- EOR services: $599 per employee monthly*
- PEO services: $65 per employee monthly
- HR help desk: Custom-priced
- ACA & COBRA administration: Custom-priced
- Expense management: Custom-priced
- Headcount planning: Custom-priced
- Learning management: Custom-priced
- Applicant tracking: Custom-priced
*Pricing is based on a quote we received
Read our Rippling review
What makes Rippling a good payroll option for businesses is its modular solutions that allow you to choose the HR and payroll tools you need. It even has an expense management module, as well as an IT solution for monitoring business software access and company computer devices. While its workforce management platform is a must-purchase, the cost of adding full-service payroll is still reasonable. However, it isn’t as cost-effective as most of the payroll software for small business users in this guide, such as Square Payroll and Patriot Payroll.
Rippling earned a 4.54 out of 5 rating in our evaluation. Its feature-rich platform, including its PEO and EOR services, are just some of the factors that contributed to Rippling’s high scores. It lost several points because it doesn’t have a pay-on-demand option, its pricing isn’t fully transparent, and you have to purchase its HR help desk add-on to get phone and email support from HR experts. However, users still appreciate its intuitive platform, efficient HR tools, and solid payroll analytics.
Don’t know what a PEO or EOR service provider can do for your business? Read our ultimate PEO and EOR guides for everything you need to know about these solutions.
Rippling claims that it can run payroll in as fast as 90 seconds.
(Source: Rippling)
Rippling Overview
- Key Features
- When To Use Something Else
- Payroll analytics: Rippling pulls your last payroll numbers automatically when you begin processing a new payroll cycle so you can compare the two easily. It helps you identify any obvious errors quickly to prevent you from having to backtrack to correct them later.
- Full-service payroll: With Rippling, you can run payroll with just three clicks. It calculates all employee payments, taxes, and deductions automatically. Payroll tax filings are also done by Rippling automatically. If you have employees and contractors based in satellite offices outside of the US, Rippling can help you manage international payroll processes so you can pay your workers accurately and on time.
- Robust HR solutions and services: Rippling has a wide range of HR solutions, such as applicant tracking, benefits administration, time and attendance, headcount planning, compensation bands, and learning management tools. Its EOR service can even help you hire and pay international workers. However, these modules are paid add-ons to Rippling’s core workforce management platform.
- IT solutions: If you have new hires, Rippling can help you assign the computer units and identify business apps that employees have access to. For resigning employees, you can easily disable software access and remotely lock their computers on their last day. Rippling even stores your unassigned computer units in its warehouse, and you can check the inventory through its system. None of the providers we reviewed have robust IT solutions.
- Flexible PEO: Rippling offers PEO services to businesses that need help managing payroll, benefits, and day-to-day HR operations. And, unlike ADP and Paychex, if you decide that you no longer need a PEO, then you can turn Rippling’s PEO services off from your account.
Rippling’s feature-rich HR payroll platform may be too much for small businesses that only need basic pay processing solutions. If you don’t require robust software integrations and advanced HR functionalities, try Patriot Payroll. It has all the essential tools you need to run payroll and is more affordable than Rippling ($37 plus $4 per employee monthly vs $35 plus $8 per employee monthly) and the other providers on our list.
Square Payroll: Best for Restaurants, Retail Shops & Square POS Users
Overall Score: 4.51 / 5
Pros
- Easy to use and navigate
- Flat pricing with an affordable contractor plan
- Seamless integration with Square POS
- Fast direct deposits, including an instant payment option
Cons
- Next-day direct deposits and instant payments require a Square Payments account
- Limited advanced HR functions
- Standard direct deposit has a four-day processing timeline
Read our Square Payroll review
Pricing
Plans
- Pay employees and contractors: $35 base fee + $6 per employee monthly
- Pay contractors only: $6 per person monthly
Read our Square Payroll review
Square Payroll is the best choice for restaurants and small retailers that are already using Square’s POS system. The seamless integration between the two Square products makes it easy to import online timecards from Square POS into its payroll tool for pay processing. It also has tip reporting features that allow you to record tip amounts, deduct taxes, and report them on your tax forms. You can run payroll as often as you need to at no extra cost (unlike some plans under big-name providers like ADP and Paychex), file quarterly and annual taxes, and sign up for pay-as-you-go workers’ compensation insurance.
In our evaluation, Square Payroll earned an overall rating of 4.51 out of 5, with high marks in nearly all of our criteria. It took a hit in popularity because it didn’t meet our sub criteria of having more than 1,000 average user reviews on G2 and Capterra. However, many of its reviews are positive, with users raving over its ease of use, affordability, and payroll tools that simplify the way they pay workers.
Aside from letting you run payroll, Square Payroll’s main dashboard shows your pay run history and an overview of your total labor costs.
(Source: Square Payroll)
Square Payroll Overview
- Key Features
- When To Use Something Else
- Multiple employee payment options: Aside from direct deposit, employees and contractors can be paid through manual checks or via Square’s Cash App. Square Payroll also offers next-day and instant payment options through its Instant Payments feature.
- On-demand pay option: This allows eligible employees to get a portion of their earned salary before the pay period is over. You don’t need to track these transactions manually because Square will deduct the applicable amount (including transfer fees, if any) automatically when you run payroll.
- Affordable contractor-only plan: Priced at only $6 per contractor monthly, Square Payroll’s contractor package comes with all the features of its “pay employees and contractors” plan, including unlimited pay runs.
Similar to QuickBooks Payroll, Square Payroll doesn’t have a wide range of HR solutions. Rippling is a great choice if you want an all-in-one HR payroll software. It even has IT tools to manage business apps and devices, as well as finance solutions for processing expense reimbursem*nts.
For contractor-only businesses with a handful of workers and only need direct deposit payments, we recommend QuickBooks Payroll’s contractor payments plan, as it is more affordable. QuickBooks will charge you $15 monthly for 20 workers (plus $2 for each additional worker), whereas Square will bill you $6 per contractor monthly.
OnPay: Best for Delegating Payroll Duties & Niche Payroll Needs
Overall Score: 4.44 / 5
Pros
- Files Form 943 (for agricultural companies)
- Multiple payment options, such as direct deposits, manual checks, and debit cards
- Affordably priced plan
- Robust system permissions
Cons
- Lacks multiple tiers that cater to varying payroll and HR needs
- Doesn’t have live phone support on weekends
- Limited third-party software integrations
- Time tracking available through partner systems
Read our OnPay review
Pricing
Unlike many of the small business payroll software in this guide, OnPay only offers one plan. For $40 plus $6 per employee monthly, you are granted access to all of its HR, payroll, benefits, and onboarding features.
Read our OnPay review
If you have a limited budget, OnPay provides a reasonably priced payroll solution that comes with basic HR tools for managing PTO, employee benefits, and onboarding. While it only has a single plan ($40 plus $6 per employee monthly), it’s one of the lowest-priced full-service payroll packages on our list—excluding Patriot with its DIY option. Plus, it can handle the niche payroll and tax filing needs of businesses like farms and agricultural companies. Its six-level system permissions even provide you with enough flexibility to control who has access to and visibility into payroll and HR.
OnPay received an overall score of 4.44 out of 5 in our evaluation, with ratings of 4 and up in almost all criteria. It didn’t rank higher on our list because it has limited third-party software integrations and user reviews on G2 and Capterra. However, many of the reviews are positive, with users loving its efficient tools as it helps them simplify and automate employee pay processing.
OnPay is equipped with smart alerts that notify you of missing time entries and other pay run errors.
(Source: OnPay)
OnPay Overview
- Key Features
- When To Use Something Else
- Special payroll services: OnPay can handle the pay processing requirements of various businesses (like restaurants and bars) and organizations, such as churches and nonprofits. For those with special tax requirements like agricultural businesses, OnPay offers automated tax payments and filings of Form 943.
- Essential HR tools: OnPay’s in-app offer letters, online I-9 and W-4 forms, e-signature tool, and automated workflows are designed to streamline onboarding. It handles state new hire reporting, plus you can create custom checklists to ensure that incoming employees complete all the new hire requirements. If you need HR guides and legal templates, OnPay has an online HR resource library that you can access.
- Employee benefits: Unlike Gusto’s health insurance, which covers only 37 states (as of this writing), OnPay’s health plans are available in all states in the United States. Your employees are also granted access to dental, vision, disability, and retirement plans. Furthermore, OnPay can generate employee census data reports that you can use when requesting insurance quotes from carriers and benefits providers.
- Payroll support: Aside from phone, chat, and email support, OnPay can guide you through pay processing if you need help. The provider even assists new clients in setting up their accounts, migrating employee information, and customizing integrations with accounting and time tracking solutions.
If you require payroll assistance from OnPay’s support team on a weekend, you won’t be able to contact them via phone. It only provides email support on Saturdays and Sundays. ADP Run and Paychex Flex are great choices if you need 24/7 support. Paychex Flex even offers a dedicated payroll specialist to its small business clients.
In addition, OnPay’s HR functionalities are basic. While it has offer letters and automated onboarding workflows, it doesn’t post your open jobs like Gusto, Rippling, Paychex Flex, and ADP Run do. Time tracking and scheduling tools are also available only through its integration with When I Work, Deputy, and QuickBooks Time. This is unlike Homebase, which has time tracking and staff scheduling as its core functionalities.
Paychex Flex: Best for Startups & Small Companies Needing Dedicated Payroll Support
Overall Score: 4.31 / 5
Pros
- Flexible plans
- Payroll and HR features are integrated
- Dedicated payroll support
- Has a wide suite of HR tools, from recruiting and time tracking to payroll and learning management
Cons
- Pricing isn’t all transparent
- Access to learning management and state unemployment insurance (SUI) services are available only in higher tiers
- Time tracking, benefits, recruiting, and document management are paid add-ons
- Year-end tax filings cost extra
Read our Paychex Flex review
Pricing
Plans
- Paychex Flex Essentials: $39 base fee + $5 per employee
- Paychex Flex Select: Custom priced
- Paychex Flex Pro: Custom priced
Paychex Plan for Solopreneurs and the Self-employed
- Paychex Solo: Custom priced
Read our Paychex Flex review
Paychex has solutions suited for different business sizes. Its Paychex Solo package includes payroll, startup/incorporation services, and access to retirement plan options, making it a suitable solution for one-person businesses. It also offers Paychex Flex as its main payroll platform, which comes with several tiers flexible enough to cater to companies of different sizes. A dedicated specialist is even on hand to help you with your payroll concerns. Unlike QuickBooks Payroll and Gusto, which have limited health insurance coverage, Paychex Flex lets you offer health insurance in all states in the US.
The platform earned a 4.31 out of 5 in our evaluation, with perfect marks in reporting, user popularity, and our expert review criteria. It lost several points because it doesn’t have transparent pricing for all of its plans and charges extra for some of its services, such as year-end tax filings, benefits administration, and time tracking. However, users still love its easy-to-use software and wide range of HR solutions.
A snapshot of Paychex Flex’s dashboard
(Source: Paychex)
Paychex Flex Overview
- Key Features
- When To Use Something Else
- Hands-free pay processing: The “Paychex Voice Assist” feature offers a hands-off experience in processing, reviewing, updating, and submitting payroll. This voice-activated tool, which works on any Google Assistant-compatible device, comes with built-in verification and artificial intelligence (AI) solutions for user authentication. You can start a new pay period, make adjustments, or continue a pay run that’s already in progress—without having to log in to your Paychex Flex account manually.
- PEO services: If you ever go through a growth period in which you need an HR expert but aren’t ready to hire, Paychex has a PEO service to help you manage essential day-to-day HR processes.
- Multiple payment options: Aside from direct deposits, Paychex Flex supports employee payments made through pay cards and paper checks. It even offers check logo and signing services. Similar to Square Payroll and QuickBooks Payroll, Paychex Flex also has a same-day payment option but via automated clearing house (ACH) transfers—provided you get its Select plan.
- HR tools: In addition to a library of HR documents and an online employee handbook builder, you are granted access to a learning management module to help you run e-training courses for your staff and a performance review solution for tracking employee performance. Screening applicants and welcoming new hires will also be easy with its background checks and online onboarding solutions.
- Experienced customer service: During implementation, Paychex will assign you a representative to help you set up. Once its system is up and running, you get access to US-based support with experienced professionals you can contact 24/7 in case you need assistance. You even have the option to submit payroll via phone to your designated payroll specialist. Live chat features, in-app help options, and how-to guides are also available.
Budget-constrained small business owners may find Paychex Flex a bit expensive given its add-on fees for time tracking and document management—solutions that most of the providers in this guide offer at no extra cost or in higher tiers. Unlike Square Payroll and QuickBooks Payroll, it doesn’t have a low-cost contractor-only payroll plan.
ADP Run: Best for Scaling Businesses That Need Flexible Plans
Overall Score: 4.06 / 5
Pros
- Multiple plans to choose from
- Automatic quarterly and annual tax filings
- Advanced HR support available
- Built-in compliance tools that flag potential errors
Cons
- Pricing isn’t transparent
- Setup fee required
- Year-end reporting costs extra
- Benefits, time tracking, and workers' compensation are add-on products
Read our ADP Run review
Pricing
Plans
- Essential: $49 base fee + $2.50 per employee, per weekly pay run*
- Enhanced: Custom priced
- Complete: Custom priced
- HR Pro: Custom priced
*Pricing is based on a quote we received for 25 employees
Read our ADP Run review
ADP Run is ADP’s payroll system for small businesses with up to 49 employees. Aside from payroll and tax management tools, it offers new hire reporting, background checks, learning management, and job postings (via ZipRecruiter). Its higher tiers even come with extra HR support and handholding that you don’t get with your typical small business payroll software like Square Payroll. ADP also makes it easy to transition from one plan to the next if your company scales and you need additional HR tools.
In our evaluation, ADP Run earned an overall score of 4.06 out of 5. It was rated highly in ease of use, payroll and HR features, reporting, popularity among users, and our expert review criterion. It scored the lowest in pricing because of its setup costs and nontransparent fees—and users even commented that it can be expensive for small businesses. However, many reviewers said they do appreciate its easy-to-use platform, adding that its payroll solution helps automate processes.
ADP Run’s payroll dashboard
(Source: ADP)
ADP Run Overview
- Key Features
- When To Use Something Else
- Multiple employee payment options: With ADP Run, you can pay your employees via direct deposit and paychecks and through the Wisely Direct Debit Card. It also offers secure paychecks with check signing and stuffing services. ADP will even deliver the sealed envelopes containing employee paychecks to your office so that you can distribute these to your staff.
- Flexible plan options: In addition to ADP Run’s multiple tiers with full-service payroll and access to essential HR tools, ADP has a wide range of products that can cater to midsize and large businesses. It offers a PEO option, ADP TotalSource, for companies that need to outsource their payroll and HR administration completely.
- Certified, experienced payroll professionals available 24/7: Similar to Paychex Flex, ADP Run allows you to get in touch with payroll and HR experts whenever you need them. You also receive legal assistance on employment matters from Upnetic Legal Services—provided you subscribe to its highest tier.
- Recruitment and HR tools: ADP’s partnership with ZipRecruiter makes it possible for you to post open jobs to leading job boards. It also offers background checks, state new hire reporting, and onboarding, in addition to training tools and an online library of HR forms and documents. You won’t get this level of HR support with any other provider on our list except Paychex Flex.
Time tracking, pay-as-you-go workers’ compensation, and benefits are paid add-ons to ADP Run’s payroll plans. If you don’t want to pay extra for these solutions, consider Square Payroll, and OnPay. If you only need payroll with an attendance module for capturing the clock ins/outs of employees, Homebase Payroll is a great option. It even has a scheduling tool—a feature that the other providers on our list don’t offer.
Homebase Payroll: Best for Businesses Employing Hourly Workers
Overall Score: 4.06 / 5
Pros
- Flat pricing with reasonable monthly fees
- Payroll plan includes time tracking, scheduling, job postings, and applicant tracking tools
- Unlimited pay runs with automated payroll tax payments and filings
Cons
- Lacks health insurance options
- Its payroll tool integrates only with QuickBooks Online
- Can get pricey if you have a multilocation business and more than 20 employees
Read our Homebase review
Pricing
Payroll Plan*
- $39 base fee + $6 per employee monthly
*Requires subscription to its time tracking and scheduling software, Homebase, which has a free plan for one-location businesses (with up to 20 employees).
Read our Homebase review
Homebase Payroll is an add-on module to Homebase, which has a suite of time tracking, hiring, and scheduling solutions. Similar to Square Payroll, it offers flat pricing for its easy-to-use pay processing solution that includes automated payroll tax payment and filing services. Its payroll platform is designed specifically for hourly teams, given its solid solutions for planning staff schedules and capturing employee attendance at work. It even offers job postings, applicant tracking, PTO management, and new hire onboarding tools.
Homebase Payroll earned an overall score of 4.06 out of 5 in our rubric. Its reasonably priced plan and efficient HR tools contributed to its high scores (4 and up), while the lack of online reviews resulted in it getting a zero rating in our popularity criteria.
With Homebase Payroll, you can process payroll in three easy clicks.
(Source: Homebase)
Homebase Payroll Overview
- Key Features
- When To Use Something Else
- Robust payroll plan: Homebase Payroll is one of the payroll systems for small businesses that we reviewed that’s reasonably priced and comes with several HR features. For only $39 plus $6 per employee monthly, you get hiring, onboarding, time tracking, and scheduling tools in addition to full-service payroll and automatic tax filing services. Gusto, ADP Run, Paychex Flex, and Rippling may offer similar functionalities but you either have to pay extra or subscribe to its higher tiers to get these solutions.
- Full-service payroll: Unlike Paychex Flex and ADP Run, Homebase Payroll offers unlimited pay runs so that you can process employee and contractor payments as many times as you need in a month. Salaries are sent to the employees’ accounts via direct deposits, although Homebase Payroll also supports payments made through printable checks. In addition to W-2 and 1099 reporting, Homebase provides automated payroll tax payments and filings.
- Early access to wages: Homebase Payroll offers an employee perk that grants your staff early access to wages. Your workers can transfer a portion of their salary to their bank account before payday to help pay for emergency expenses.
Homebase Payroll is great for small businesses that don’t operate in multiple states and have fewer than 20 employees because you only need to pay for its payroll module and still access its main platform’s free plan (which comes with time tracking, scheduling, and hiring tools). However, if you plan to grow into a multi-location company, you’ll be charged monthly fees for Homebase itself (in addition to the fees you pay for Homebase Payroll).
For fast-growing startups, consider Paychex Flex and ADP Run. Both offer flexible payroll plans that can fit the needs of small to large businesses. Rippling is also a good option because it has modular solutions that you can mix and match—provided you get its core workforce management platform.
Patriot Payroll: Best for Mom-and-Pop Businesses That Want a Low-cost DIY Option
Overall Score: 4.06 / 5
Pros
- Affordable
- Multiple plans include full-service payroll and a do-it-yourself (DIY) option
- Unlimited pay runs
- Free payroll setup and expert support
Cons
- Multistate tax filings and time tracking cost extra
- Lacks benefits options
- Standard lead time for direct deposits is four days
- Very limited HR tools
Read our Patriot Payroll review
Pricing
Plans
- Basic Payroll with DIY tax filings: $17 base fee + $4 per employee monthly
- Full Service Payroll: $37 base fee + $4 per employee monthly
Add-ons
- Multistate tax filings: $12 monthly for each additional state
- 1099 e-filings (for Basic Payroll subscribers only): $20 for up to five 1099 e-filings; an additional $2 per 1099 is required for six to 35 filings (no additional charge for 36 or more)
Read our Patriot Payroll review
Patriot Payroll offers a flexible option that others in this guide don’t: a choice between full-service payroll and a more affordable DIY version. Both come with unlimited payroll runs, multiple pay rates, automated PTO accrual calculations, and customizable deductions and contributions. You can pay employees through direct deposit or manual checks, and if you choose its full-service plan, Patriot will pay and file all federal, state, and local taxes. It even has add-on solutions for tracking employee attendance and managing employee information.
Scoring 4.06 out of 5 in our evaluation, Patriot Payroll received perfect marks in pricing and popularity among users. It posted the lowest score in HR functionalities because it doesn’t offer new hire onboarding and employee benefits that most of the payroll software in this list provides. However, users still appreciate its reasonably priced plans, helpful support team, and easy-to-use payroll tools.
Patriot Payroll has a three-step pay run process.
(Source: Patriot Payroll)
Patriot Payroll Overview
- Key Features
- When To Use Something Else
- Self-service plan: You can save the most money if you have a couple of employees and are willing to file payroll taxes on your own using Patriot’s Basic Payroll plan. Priced at only $17 plus $4 per employee monthly, this is the most cost-efficient option among all the payroll providers in this guide.
- Flexible payroll system: In addition to unlimited pay runs, Patriot Payroll supports multiple pay rates, plus you can either use its standard deduction and contribution types or create your own to capture payroll details for garnishments, health insurance options, and retirement plans. Employees and contractor payments are made through direct deposits, but the processing time is four days.
- Tax penalty guarantee: If you subscribe to one of its Full Payroll plans, Patriot ensures that your taxes will be calculated and filed on time. Any disputes will be resolved and paid for by Patriot for tax filing mistakes that its representatives commit. Compare this to QuickBooks—under its Elite plan, it covers the penalty and interest for any payroll tax error for up to $25,000 a year, regardless of who made the mistake.
Patriot Payroll only offers its two-day direct deposit feature to qualified clients. If you want fast direct deposits, we recommend QuickBooks Payroll (its basic plan comes with next-day options) and Square Payroll (its Instant Payments feature lets you pay employees instantly).
For companies with business locations in several states, Patriot can handle multistate pay runs but charges a $12 fee for each additional state tax filing. If you don’t want to pay extra, consider the other payroll providers on our list (except Gusto).
For more payroll software options, check out our buyer’s guide on the best payroll services to help you find a payroll software or service that fits your business’s needs.
How We Chose the Top Payroll Software
We checked and compared the best small business payroll software across industries; most of them offer many of the same basic payroll tools with certain nuances in features, such as same-day vs two-day direct deposit or unlimited pay runs vs limited pay runs. Generally, the top payroll software offers direct deposit, tax filing, and year-end tax report preparation. Some even provide benefits and HR support.
Click through the tabs below for a more detailed breakdown of our evaluation criteria:
- Breakdown
- Pricing
- Payroll features
- Ease of use
- HR features
- Expert review
- Popularity
- Reporting
20%
Pricing
20%
Payroll features
20%
Ease of use
15%
HR features
15%
Expert review
5%
Popularity
5%
Reporting
20% of Overall Score
We checked to see if the provider has transparent pricing, zero setup fees, and multiple plan options with unlimited pay runs. Those priced at $50 or less per employee monthly were also given extra points.
20% of Overall Score
We gave priority to those that offer multiple pay options, two-day direct deposits, tax payments and filings, year-end reporting (W-2s and 1099s), and a penalty-free tax guarantee.
20% of Overall Score
Payroll service and software should be simple to set up, customizable, and have a user-friendly interface. We also looked at whether the provider offers live support and integration options with online tools that most small and medium businesses (SMBs) use, such as accounting, time tracking, and scheduling software.
15% of Overall Score
Online onboarding, which means giving employees the option to fill out forms like W-4s electronically, is the top criterion, followed by state new hire reporting and the availability of a self-service portal where employees can view pay stubs, edit information, and access forms. Extra points were also given to providers that offer expert HR support, benefits options, time tracking, and health insurance plans that cover all US states.
15% of Overall Score
In this criterion, we assess whether the software’s ease of use, pricing, and the width and depth of its payroll and HR tools are ideal for SMBs.
5% of Overall Score
We considered user reviews, including those of our competitors based on a 5-star scale; any option with an average of 4-plus stars is ideal. Also, any software with 1,000-plus reviews on any third-party site is preferred.
5% of Overall Score
Preference was given to software with built-in basic payroll reports and customization options.
*Percentages of overall score
Keeping track of payroll trends will help your business adapt to potential changes that may impact business operations. Here are some payroll trends and statistics you need to know this year.
- Payroll runs: The most common pay period in the US is biweekly pay runs, according to the Bureau of Labor Statistics (BLS) Current Employment Statistics (CES) study. Nearly half of the survey respondents, which belong to around 122,000 businesses and government agencies, pay their workers every two weeks or biweekly. The second most common pay frequency is weekly, followed by semi-monthly and monthly.
- Payment options: The 2023 “Getting Paid in America” survey conducted by the American Payroll Association shows that over 95% of employees are paid through direct deposit. This signifies the continued popularity of digital payments, reducing the risk of payroll fraud.
- Pay rates: Many workers want higher wages from their employers, according to the 2023 “Getting Paid in America” survey. 73% of the survey respondents want competitive wages over better health benefits. Most US employers have also paid higher pay rates in the previous year. The BLS Employment Cost report showed that compensation costs for private workers increased 5.1% for the 12-month period ending in December 2022. In December 2021, the increase was 4.4%.
To know other payroll trends that might affect your business, check out our payroll statistics article.
Frequently Asked Questions (FAQs)
A payroll system can accurately calculate employee wages (such as salaries, overtime, and deductions for required payroll taxes) and pay workers either through direct deposits, pay cards, or paychecks. Many payroll solutions also include tax payment and filing services. Others even provide access to basic HR tools like time and PTO tracking, allowing you to easily capture employee attendance data for pay processing.
The best payroll software for small business users should be reasonably priced and meet your budgetary needs while providing essential solutions you need to compute and process employee payments and payroll taxes.
A payroll software can cost anywhere from $30 to $50 per employee monthly. You should expect to pay more if you want additional functionalities like time tracking, employee benefits, and HR advisory services.
Basic HR tools like employee data management, PTO and time tracking, and new hire onboarding are essential as these help small business payroll software users streamline day-to-day HR tasks. Having access to benefits plans and benefits administration tools are also important. These allow you to manage workers comp, health insurance, and other employee benefits through your payroll software.
Aside from calculating earnings and deductions, online software for payroll for small business users help automate processes given its workflow and compliance tools. This helps you save time and enables you to manage payroll easily while ensuring that you remain compliant with federal regulations and labor laws.
Bottom Line
Small businesses need reliable payroll software to save time and money. Most providers calculate wages, offer direct deposit, and pay taxes. However, you should consider your business needs and budget limitations. Small businesses can benefit from features such as automated tax payments, year-end report filing, and unlimited payroll runs.
We found that Gusto offers all the features that most small businesses need at a very competitive price. Users find it very easy to use and navigate, and the software is widely used in different industries. Sign up for a Gusto plan today.
